After suffering through its worst quarter in four years, the Central Indiana rental market saw a huge rebound during this year's first quarter.
In spite of a less than stellar January, where frigid temperatures kept a lot of people indoors instead of out looking for rental homes, first quarter numbers were eerily similar to quarter one of 2017.Quick Central Indiana Rental Market Overview
Indianapolis saw 733 homes rent during the first quarter. That's up significantly from the four quarter of 2017, where only 521 homes rented. Strangely enough, 732 homes rented during the same quarter last year, which shows some stability in the market.
Quick, unrelated, side note: 733 is also the approximate number of potholes in a 100-yard stretch along 52nd Street in front of our Office. Come on, Indianapolis!
OK, back to the blog...
Both average rent and average days on market (DOM) were steady as well. Rents averaged $1,128 for the quarter (compared to $1,116 during Q1, 2017) while DOM went from 47 in Q4, 2017 to 49 last quarter.
Sales Inventory is Tight
We have a lot of Realtor and Investors who read this blog.
As both of these groups know, sales inventory is very tight right now. Simply put, it's very hard to buy homes in Central Indiana.
According to a recent report by FC Tucker, inventory in February (number of available homes) shrunk by a whopping 22% in Central Indiana when compared to February of 2017.
Average sales price, as you might guess, also increased during that same time by more than 5%.
Clearly, it's a seller's market out there. So, if you are an investor looking to pick up additional rental homes, patience is key.
And, the ability to spend a little more than you might be used to is also a definite possibility.
T&H Realty Services' Perspective
After a very slow 4th quarter, we saw our expected New Year bump in January, even though, as mentioned above, the weather was unfavorable.
Activity during February and March continued to be brisk. Our average Days on Market were nearly two weeks faster than our collective competition during the quarter and we expect that number to widen as we get into a heart of the rental season.